Disproportionate Assets Cases: How ED Traces Bank Deposits, Investments and Family Property under PMLA

DISPROPORTIONATE ASSETS | BANK DEPOSITS | INVESTMENTS | FAMILY PROPERTY | PMLA | ED FINANCIAL TRACING

Detailed legal research by Advocate Ankit Kumar Singh

Researched and legally updated: 5 August 2026

Direct Answer: How Does ED Trace Disproportionate Assets?

In a disproportionate-assets case, ED ordinarily begins with the scheduled-offence FIR or charge sheet under the Prevention of Corruption Act and then reconstructs the complete financial position of the investigated public servant and relevant family members.

The investigation may compare:

• assets existing before the check period;
• salary, allowances and other lawful income;
• household and personal expenditure;
• bank deposits and cash credits;
• fixed and recurring deposits;
• mutual funds, shares and demat transactions;
• insurance premiums and maturity proceeds;
• gold, jewellery and locker contents;
• land, houses, flats and construction expenditure;
• property held by a spouse, child, parent or relative;
• funds routed through companies or associated entities;
• loans, gifts, inheritance and agricultural income;
• assets and expenditure at the end of the check period; and
• the amount alleged to remain unexplained.

ED must then separately establish the PMLA foundation:

1. a legally sustainable scheduled offence;
2. property derived or obtained from that criminal activity;
3. the amount alleged as proceeds of crime;
4. the bank, investment or property trail; and
5. the process or activity attributed to the person under Section 3 PMLA.

The mere fact that a deposit, investment or property is unexplained for tax, departmental or accounting purposes does not automatically establish that it constitutes proceeds of crime.

Quick Disproportionate-Assets Calculation

ILLUSTRATIVE FORMULA:

CLOSING ASSETS
+ EXPENDITURE DURING CHECK PERIOD
- OPENING ASSETS
- LAWFUL INCOME DURING CHECK PERIOD
=
ALLEGED DISPROPORTIONATE ASSETS
    

The formula is only a framework. Every component must be supported by admissible and transaction-specific evidence.

Illustrative Example

OPENING ASSETS:                  ₹20 LAKH
LAWFUL CHECK-PERIOD INCOME:     ₹90 LAKH
CHECK-PERIOD EXPENDITURE:       ₹40 LAKH
CLOSING ASSETS:                ₹1.10 CRORE

EXPECTED AVAILABLE SAVINGS:

₹20 LAKH + ₹90 LAKH - ₹40 LAKH
= ₹70 LAKH

ALLEGED EXCESS:

₹1.10 CRORE - ₹70 LAKH
= ₹40 LAKH
    

This example should not be used mechanically. Liabilities, loan-funded assets, depreciation, sale and reinvestment, valuation dates, joint ownership and duplicate entries require separate treatment.

Contents

1. Legal framework
2. The check period
3. Opening assets
4. Known lawful income
5. Household and other expenditure
6. Bank-account mapping
7. Cash-deposit tracing
8. Fixed and recurring deposits
9. Shares, mutual funds and insurance
10. Family-member bank accounts
11. Property in family members’ names
12. Gifts, loans and inheritance
13. Agricultural and business income
14. Companies, firms and trusts
15. Jewellery, valuables and lockers
16. Digital and accounting evidence
17. Freezing and attachment
18. Defence preparation
19. Frequently asked questions

Important Legal Verification Notice

A disproportionate-assets analysis cannot be prepared accurately from a list of properties alone.

The following documents must ordinarily be examined together:

• predicate FIR;
• preliminary-enquiry report, where available;
• charge sheet and supplementary charge sheets;
• ECIR-related record available to the person;
• check-period calculation;
• opening-assets statement;
• income statement;
• expenditure statement;
• final assets statement;
• bank-account chart;
• investment chart;
• family-member income records;
• property documents;
• search and seizure material;
• Provisional Attachment Order;
• Section 8 notice and confirmation order;
• arrest and remand documents, where applicable;
• prosecution complaint; and
• latest court orders.

The statutory version of Section 13 of the Prevention of Corruption Act must be identified from the dates and the predicate prosecution. Older cases may use former Section 13(1)(e), while later conduct may be examined under current Section 13(1)(b).

Legal Framework: Prevention of Corruption Act and PMLA

Section 13(1)(b) of the Prevention of Corruption Act

Current Section 13(1)(b) concerns a public servant who intentionally enriches himself illicitly during the period of office.

Its explanations address a situation where:

• the public servant personally possesses property or pecuniary resources;
• another person possesses them on the public servant’s behalf;
• the property is disproportionate to known lawful sources; and
• the public servant cannot satisfactorily account for it.

Section 2(1)(u) PMLA

PMLA requires identification of property derived or obtained, directly or indirectly, from criminal activity relating to a scheduled offence.

A disproportionate-assets offence under the Prevention of Corruption Act may provide the scheduled-offence foundation, but ED must still identify the proceeds-of-crime property.

Section 3 PMLA

ED may allege involvement in:

• concealment;
• possession;
• acquisition;
• use;
• projecting as untainted;
• claiming as untainted;
• attempting;
• knowing assistance; or
• knowing participation.

Section 24 PMLA

PMLA contains a statutory burden concerning proceeds of crime. The burden does not permit the prosecution to avoid first identifying the scheduled offence, alleged proceeds, property and transaction link.

What Is the Check Period?

The check period is the period selected for comparing:

• lawful income;
• expenditure;
• opening resources;
• assets acquired; and
• closing resources.

Check-Period Questions

• Why was the starting date selected?
• Why was the ending date selected?
• Does it correspond with the period of public office?
• Does it correspond with the alleged criminal conduct?
• Were assets acquired immediately before or after the period?
• Were pre-existing deposits renewed during the period?
• Was a pre-period property registered later?
• Was construction completed during the period on pre-owned land?
• Was the period extended without recalculating income?
• Were family members financially independent during only part of the period?

A wrongly selected or inconsistently applied check period can distort the entire calculation.

Opening Assets: The Starting Financial Position

Every item existing before the check period should be recorded.

Opening Movable Assets

• bank balance;
• cash balance supported by records;
• fixed deposits;
• recurring deposits;
• shares and mutual funds;
• insurance surrender value;
• provident fund;
• bonds;
• jewellery;
• vehicles;
• business capital; and
• money lawfully receivable.

Opening Immovable Assets

• ancestral property;
• inherited property;
• pre-check-period purchases;
• agricultural land;
• house or flat;
• commercial property;
• joint-family property;
• leasehold interest; and
• partly constructed property.

Opening Liabilities

• housing loan;
• vehicle loan;
• personal loan;
• business loan;
• family loan;
• mortgage;
• unpaid consideration; and
• other genuine debt.

Failure to recognise a genuine opening asset may cause its later maturity, redemption, sale or reinvestment to be incorrectly treated as unexplained income.

What Counts as Known Lawful Income?

The current statutory expression concerns income from lawful sources.

Employment and Public-Service Income

• salary;
• allowances;
• arrears;
• bonus;
• leave encashment;
• provident-fund withdrawal;
• gratuity;
• pension;
• reimbursement; and
• other admissible service benefits.

Investment and Property Income

• bank interest;
• fixed-deposit interest;
• dividend;
• mutual-fund redemption gain;
• capital gain;
• bond interest;
• insurance maturity;
• rent;
• property-sale proceeds; and
• genuine loan repayment received.

Family and Other Lawful Sources

• spouse’s salary;
• spouse’s professional income;
• family business income;
• agricultural income;
• inheritance;
• documented gifts;
• genuine loans;
• sale of jewellery or another asset;
• maturity of a pre-existing investment; and
• earlier accumulated lawful savings.

An income-tax return is relevant evidence but does not automatically establish the genuineness, receipt, timing or source of every amount stated in it.

Conversely, the absence of a particular entry in one tax return does not by itself conclusively prove that no lawful source existed. The complete evidence must be examined.

How Is Household and Personal Expenditure Calculated?

Expenditure reduces the lawful income available for asset acquisition.

Common Expenditure Heads

• food and household expenses;
• rent or housing maintenance;
• electricity and utilities;
• school and college fees;
• medical expenditure;
• travel;
• vehicle expenses;
• domestic staff;
• insurance premiums;
• loan interest;
• marriage and family functions;
• club or membership fees;
• tax payments;
• construction expenditure;
• foreign travel; and
• other lifestyle expenditure.

Expenditure Errors to Check

• Use of an arbitrary household percentage without supporting facts.
• Counting loan principal as expenditure and again counting the purchased asset.
• Counting employer-reimbursed expenses.
• Including expenditure incurred outside the check period.
• Including another family member’s independently paid expenses.
• Counting a transfer between personal accounts as expenditure.
• Ignoring refunds or reimbursements.
• Estimating marriage expenditure without evidence.
• Using present construction value instead of historic cost.

How ED Maps Bank Accounts

ED may prepare an account network for the public servant and every relevant connected person or entity.

Account type	Principal tracing question
Salary account	What lawful employment income was received?
Savings account	What were the sources of credits and destinations of debits?
Joint account	Who contributed and who operated it?
Spouse account	Does the spouse possess independent income and financial capacity?
Minor child account	Who supplied the funds and for what purpose?
Parent or relative account	Was the transfer genuine, temporary, gifted, loaned or beneficially held?
Company account	Was the payment commercial or a route for personal funds?
Loan account	Was the property genuinely financed and who repaid the loan?
Investment-linked account	What was the source of the investment subscription?

Account-Mapping Data

• account-opening form;
• KYC;
• PAN;
• mobile number;
• email;
• nominee;
• authorised operator;
• internet-banking user;
• linked accounts;
• cheque images;
• cash-deposit slips;
• UPI and electronic transfers;
• fixed-deposit records;
• locker relationship; and
• loan and investment links.

How Cash Deposits Are Analysed

A cash deposit is a financial event, not a self-proving criminal fact.

ED May Examine

• amount and frequency;
• branch and location;
• deposit slip handwriting;
• person making the deposit;
• deposit immediately before property payment;
• deposit immediately before an FD or investment;
• cash withdrawals from another family account;
• business cash book;
• agricultural-sale records;
• rent receipts;
• gift or loan claim;
• cash shown in tax filings;
• same-day deposits across several accounts;
• round-number deposits; and
• rapid transfer after deposit.

Cash-Source Defence Documents

• cash book;
• earlier withdrawal;
• agricultural produce sale;
• business sale record;
• rent record;
• property-sale document;
• loan agreement;
• donor evidence;
• event contribution record;
• opening cash balance;
• tax record; and
• independent confirmation.

A vague statement that cash came from agriculture, family savings or gifts is ordinarily weaker than a date-wise, amount-wise documentary explanation.

Fixed Deposits and Recurring Deposits

The correct analysis follows the deposit from its original funding to its final use.

Fixed-Deposit Lifecycle

1. Original source account.
2. Original principal.
3. Booking date.
4. Interest rate.
5. Maturity date.
6. Renewal instructions.
7. Accrued interest.
8. Premature closure.
9. Loan or lien against the deposit.
10. Destination of maturity proceeds.

Common Fixed-Deposit Errors

• Counting the same principal on every renewal.
• Counting interest as unexplained despite bank records.
• Ignoring that an FD predates the check period.
• Ignoring a matured earlier FD used to book a new FD.
• Counting a joint FD entirely against one holder.
• Ignoring a bank loan secured by the FD.
• Ignoring the spouse’s contribution.
• Using maturity value instead of original acquisition cost without adjustment.

Recurring Deposits

A recurring deposit should be reconciled instalment by instalment with:

• salary;
• pension;
• business income;
• standing instructions;
• cash deposits;
• family contributions; and
• maturity proceeds.

How ED Traces Investments

Mutual Funds

• folio number;
• AMC and registrar;
• purchase date;
• lump-sum or SIP;
• source bank account;
• switch transactions;
• dividend or growth option;
• redemption;
• capital gain;
• nominee; and
• destination of proceeds.

Shares and Demat Holdings

• demat account;
• broker account;
• bank linkage;
• purchase consideration;
• off-market transfer;
• pledge;
• dividend;
• sale proceeds;
• beneficial owner;
• company relationship; and
• transfer to a family member.

Insurance Policies

• proposal form;
• proposer;
• life assured;
• beneficiary;
• premium payer;
• source account;
• cash premium;
• policy loan;
• surrender value;
• maturity proceeds; and
• assignment.

Investment Defence Question

The correct question is not merely:

“Whose name appears on the investment?”

It is:

“Who supplied the investment money, from which lawful source, through which account, who controlled the investment and who received the benefit?”

Family-Member Bank Accounts

ED may scrutinise a family account where:

• large cash deposits appear;
• the public servant transfers money;
• property payments originate from it;
• the account holder lacks apparent capacity;
• salary or business income is inconsistent with the balance;
• funds are routed through several relatives;
• the same mobile number or email controls several accounts;
• the public servant signs cheques or operates internet banking;
• money is transferred to a family company;
• the account pays the public servant’s personal expenses; or
• the funds are converted into investments or property.

Independent Family Income

A spouse or relative should separately establish:

• employment;
• salary credits;
• professional receipts;
• business turnover;
• tax returns;
• prior savings;
• inheritance;
• property-sale proceeds;
• investment maturity;
• loan eligibility;
• personal expenditure; and
• net amount available for acquisition.

A joint family account should not be analysed as if every credit automatically belongs to the investigated public servant.

Property Purchased in the Name of a Spouse or Family Member

Registered ownership is an important fact but is not the end of the enquiry.

ED May Examine

• who located the property;
• who negotiated with the seller;
• who paid the booking amount;
• who paid stamp duty;
• who arranged the loan;
• who paid EMIs;
• who funded construction;
• who retained the original title document;
• who possessed the property;
• who received rent;
• who paid property tax;
• who insured and maintained it;
• who declared it in tax or service records;
• who decided on sale or mortgage; and
• who ultimately enjoyed the property.

Family-Member Defence

The title holder should prepare:

• income chronology;
• bank-payment trail;
• loan sanction;
• EMI statements;
• down-payment source;
• sale deed;
• seller receipts;
• tax return;
• employment or business records;
• inheritance or gift documents;
• possession and rental evidence;
• construction-payment records;
• property-tax records; and
• proof of independent beneficial ownership.

Criminal Liability and Property Attachment Are Different

A property may remain subject to attachment even where the title holder disputes or is acquitted of personal criminal participation, depending upon the finding concerning the property’s source and the applicable statutory proceedings.

Personal prosecution requires person-specific evidence of knowledge, assistance, participation or another legally relevant role.

Ancestral, Inherited and Pre-Existing Family Property

An inherited or ancestral label must be supported by the title history.

Relevant Documents

• old title deeds;
• revenue records;
• family partition;
• will;
• probate;
• succession certificate;
• death certificate;
• genealogy;
• mutation;
• historic tax payment;
• rent or crop income;
• earlier possession; and
• sale and reinvestment trail.

A pre-existing land parcel may be lawful, while construction or development during the check period may require a separate source explanation.

Similarly, inherited property sold during the check period may generate lawful sale proceeds, but the sale, receipt and reinvestment must be traced.

Gifts, Loans and Family Contributions

Gift Claim

A genuine gift claim may require:

• gift deed or contemporaneous writing;
• donor identity;
• relationship;
• donor bank statement;
• donor tax record;
• donor financial capacity;
• occasion;
• transfer proof;
• acceptance; and
• consistent disclosure.

Loan Claim

• loan agreement;
• lender identity;
• lender capacity;
• bank transfer;
• interest terms;
• repayment;
• tax treatment;
• security; and
• contemporaneous acknowledgement.

Family Contribution

Where several family members contributed, the transaction should be divided into:

• contributor;
• amount;
• date;
• source;
• payment route;
• ownership share;
• loan responsibility;
• beneficial interest; and
• subsequent income or sale allocation.

Agricultural Income and Cash-Intensive Business Claims

Agricultural income is a lawful source when genuinely earned and adequately proved.

Agricultural Evidence

• land ownership or lease;
• land area;
• crop;
• season;
• irrigation;
• seed and input purchase;
• labour expenditure;
• yield;
• mandi or purchaser record;
• transport;
• sale receipt;
• bank deposit;
• agricultural tax or revenue record; and
• weather or crop feasibility.

A very large agricultural-income claim from a small, recently acquired or non-cultivated parcel may be examined closely.

Cash-Intensive Business

A dairy, trading, retail, transport, animal-husbandry or other cash business should be supported by:

• registration;
• premises;
• stock;
• employees;
• customers;
• sales records;
• purchase records;
• GST or tax filings;
• cash book;
• bank deposits;
• supplier confirmation; and
• commercial capacity.

Companies, Partnerships, Trusts and Associated Entities

ED may examine whether an entity is:

• a genuine operating business;
• a family investment vehicle;
• a holder of personal property;
• a recipient of cash deposits;
• a route for accommodation entries;
• a lender to family members;
• a purchaser of property;
• a vehicle for inflated business income;
• a trustee or nominee; or
• a layering entity.

Entity Records

• incorporation or registration;
• shareholding;
• beneficial ownership;
• capital contribution;
• directors or partners;
• bank authority;
• business premises;
• employees;
• contracts;
• invoices;
• tax filings;
• audited accounts;
• related-party transactions;
• loans and advances;
• property holdings; and
• actual commercial activity.

Mere family shareholding does not automatically make every company asset the personal property of the public servant. Conversely, incorporation does not protect an entity that is merely a conduit or nominal holder.

Jewellery, Gold, Silver, Cash and Bank Lockers

Jewellery Source Documents

• purchase invoices;
• hallmark records;
• bank payment;
• historic valuation;
• insurance schedule;
• marriage photographs;
• gift record;
• inheritance;
• wealth disclosure;
• family partition;
• gold-loan record;
• exchange of old jewellery; and
• tax disclosure.

Locker Questions

• Who hired the locker?
• Who operated it?
• Who held the key?
• What is the operation history?
• Who owns each item?
• Was each item properly inventoried?
• What weight and valuation were recorded?
• Was third-party property stored there?
• Were title documents kept only for safekeeping?

The locker holder is not automatically the legal owner of every article or document found inside.

Digital, Tax and Accounting Evidence

ED may examine:

• mobile phones;
• WhatsApp and other messaging applications;
• email;
• spreadsheets;
• Tally or ERP data;
• cloud storage;
• scanned property documents;
• banking applications;
• investment applications;
• digital-signature records;
• income-tax data;
• annual property returns;
• company filings;
• GST records;
• property-registration data;
• demat and securities data; and
• insurance records.

Digital-Evidence Safeguards

• Device ownership does not automatically prove authorship.
• A saved file does not automatically prove implementation.
• A spreadsheet requires source and corroboration.
• A chat requires complete context.
• An accounting entry requires transaction verification.
• A contact name does not prove the person’s identity.
• Hash, custody and electronic-record requirements remain relevant.

Common Financial Red Flags Examined by ED

• Large cash deposits inconsistent with salary.
• Deposits immediately before property registration.
• FDs in relatives’ names without apparent capacity.
• Insurance premiums paid by another person.
• Mutual-fund investments funded through cash credits.
• Property purchased by a non-earning dependent.
• Multiple properties acquired during a short period.
• Understated consideration and alleged cash component.
• Family companies with limited genuine activity.
• Loans from persons lacking financial capacity.
• Gifts first asserted after investigation began.
• Agricultural income inconsistent with land and crop.
• Backdated agreements.
• Rapid movement between family accounts.
• Cash withdrawal followed by family deposit.
• Title documents retained by the public servant.
• Family expenses paid from an unexplained company account.
• Repeated renewal of deposits shown as fresh wealth.

A red flag justifies examination. It is not a final finding of criminality.

Current Official Disproportionate-Assets Illustrations

Govind Prasad Mehra Matter

In June 2026, ED reported provisional attachment of properties valued at approximately ₹67.25 crore belonging to a former another Indian jurisdiction PWD official and family members.

The reported assets included residential properties, a developed farm or resort-style property, cash, gold, silver and other valuables.

Prabhanshu Shekhar Matter

In January 2026, ED alleged that proceeds arising from corrupt practices were:

• deposited into family-member accounts;
• used for household expenses;
• invested in property in the wife’s name;
• used for insurance policies; and
• converted into jewellery and precious metals.

Arun Yadav Matter

In March 2026, ED alleged use of cash deposits, inflated declarations of business income, routing through a contractor company and acquisition of agricultural land, flats and commercial property.

Hem Chandra Borah Matter

In May 2026, ED reported attachment of immovable property in a matter involving a railway officer and spouse.

These examples describe allegations and procedural actions reported by ED. They are not final judicial determinations of guilt.

Search, Freezing and Provisional Attachment

Section 17 Search

A search may cover:

• residence;
• office;
• family premises;
• company premises;
• digital devices;
• bank lockers;
• property papers;
• cash and jewellery; and
• accounting records.

Bank Freezing

The account holder should identify:

• statutory provision;
• freeze date;
• balance frozen;
• credits received after freeze;
• salary and pension credits;
• third-party funds;
• lawful recurring payments;
• joint ownership;
• retention proceedings; and
• relief required.

Section 5 Attachment

A property-wise challenge should examine:

• recorded reasons;
• material relied upon;
• scheduled-offence foundation;
• proceeds amount;
• direct or equivalent-value theory;
• ownership;
• acquisition source;
• valuation;
• double counting; and
• independent family interest.

When Can a Family Member Face Personal PMLA Liability?

A family member may be proceeded against where ED alleges evidence of:

• knowing receipt of proceeds;
• intentional account use;
• active property negotiation;
• false income or loan documentation;
• knowing concealment of beneficial ownership;
• operation of a layering company;
• projection of criminal property as lawful personal income;
• use of proceeds for personal benefit;
• assistance in conversion or transfer; or
• abetment of the scheduled corruption offence.

Personal culpability should not be presumed merely because:

• the person is a spouse;
• the person is a dependent;
• the property is jointly registered;
• the public servant paid some family expenses;
• the title document was kept at the family residence; or
• the person signed a routine document without knowledge of illegality.

Arrest and Section 45 Bail in a Disproportionate-Assets PMLA Case

Arrest is not an automatic consequence of identifying an asset difference.

The Section 19 record should identify:

• specific proceeds;
• person-specific role;
• material in possession;
• reason to believe;
• continuing concealment or use;
• custody requirement;
• evidence or property still to be traced; and
• grounds of arrest furnished to the person.

Bail Preparation

• Challenge incorrect DA calculation.
• Identify lawful opening assets.
• Identify omitted income.
• Explain each questioned deposit.
• Prove genuine loans and gifts.
• Separate spouse or family income.
• Identify duplicate counting.
• Challenge property valuation.
• Show documentary completion of investigation.
• Address custody period and trial delay.
• Address statutory provisos where applicable.
• Offer conditions securing attendance.

Prosecution Complaint, Discharge and Trial

A PMLA prosecution complaint should identify:

• the scheduled corruption offence;
• the check period;
• the DA calculation;
• the property treated as proceeds;
• the money trail;
• the role of each accused;
• the Section 3 process or activity;
• the attached property; and
• the supporting evidence.

Possible Discharge Issues

• No legally sustainable scheduled offence.
• Incorrect check period.
• Opening assets omitted.
• Lawful income omitted.
• Expenditure inflated.
• Internal transfers counted as income or assets.
• Renewed deposits counted repeatedly.
• Family income ignored.
• No beneficial-ownership evidence.
• No person-specific Section 3 activity.
• Unexplained property treated automatically as proceeds.
• Direct and equivalent-value theories confused.

Disproportionate-Assets Financial-Tracing Workflow

Complete Defence Preparation

Workstream One — Check-Period Audit

• Confirm the opening and closing dates.
• Identify the applicable Section 13 version.
• List every opening asset and liability.
• Identify every lawful income source.
• Verify expenditure methodology.
• Recalculate the alleged percentage.

Workstream Two — Deposit Audit

• Prepare account-wise statements.
• Classify salary, cash, transfer, interest and maturity credits.
• Identify contra and internal transfers.
• Trace renewed FDs.
• Identify joint-holder contributions.
• Explain every questioned cash deposit.

Workstream Three — Investment Audit

• Prepare folio and demat schedules.
• Trace investment subscriptions.
• Identify redemption and reinvestment.
• Separate principal and gain.
• Trace insurance premium and maturity.
• Identify nominees and beneficial owners.

Workstream Four — Family Property Audit

• Prepare member-wise income statements.
• Trace down payment and EMI.
• Identify inheritance and gifts.
• Prove independent occupation and enjoyment.
• Separate direct and equivalent-value allegations.
• Prepare separate Section 8 claims for each owner.

Adaptable Financial-Tracing Formats

Check-Period Master Chart

DISPROPORTIONATE-ASSETS MASTER CALCULATION

1. Check-period start:
2. Check-period end:
3. Applicable PC Act provision:
4. Opening movable assets:
5. Opening immovable assets:
6. Opening liabilities:
7. Salary and service income:
8. Spouse income:
9. Agricultural income:
10. Business income:
11. Rental income:
12. Interest and investment income:
13. Property-sale proceeds:
14. Gifts:
15. Loans:
16. Inheritance:
17. Other lawful income:
18. Household expenditure:
19. Education expenditure:
20. Medical expenditure:
21. Travel and vehicle expenditure:
22. Insurance premiums:
23. Loan interest:
24. Construction expenditure:
25. Other expenditure:
26. Closing bank balances:
27. Closing deposits:
28. Closing investments:
29. Closing jewellery and valuables:
30. Closing immovable property:
31. Closing liabilities:
32. ED alleged DA:
33. Defence recalculation:
34. Difference:
35. Supporting annexures:
    

Deposit-Wise Source Chart

BANK DEPOSIT SOURCE CHART

1. Account holder:
2. Bank and branch:
3. Account number:
4. Deposit date:
5. Deposit amount:
6. Cash / transfer / cheque:
7. Depositor:
8. Claimed source:
9. Source document:
10. Previous withdrawal:
11. Related account:
12. Subsequent transfer:
13. Investment or property use:
14. ED allegation:
15. Defence explanation:
16. Supporting annexure:
    

Family-Property Chart

FAMILY PROPERTY SOURCE AND OWNERSHIP CHART

1. Property description:
2. Registered owner:
3. Relationship:
4. Acquisition date:
5. Purchase consideration:
6. Stamp duty:
7. Down payment:
8. Source of down payment:
9. Loan:
10. EMI payer:
11. Construction expenditure:
12. Owner's lawful income:
13. Public servant contribution:
14. Gift or inheritance:
15. Possession:
16. Rental income:
17. Tax treatment:
18. Title-document custody:
19. ED's direct / indirect / value theory:
20. Relief requested:
    

Investment Lifecycle Chart

INVESTMENT LIFECYCLE

1. Investment holder:
2. Product:
3. Folio / policy / demat number:
4. Subscription date:
5. Principal:
6. Source account:
7. Funding source:
8. Additional contributions:
9. Interest / dividend / gain:
10. Redemption or maturity:
11. Destination of proceeds:
12. Renewal or reinvestment:
13. Nominee:
14. Beneficial owner:
15. ED allegation:
16. Defence documents:
    

Common Mistakes That Weaken the Defence

• Giving one general explanation for all assets.
• Failing to challenge the check period.
• Ignoring opening deposits and investments.
• Producing tax returns without underlying bank records.
• Claiming gifts without proving donor capacity.
• Claiming loans without repayment evidence.
• Claiming agriculture without production and sale records.
• Failing to separate principal from FD interest.
• Failing to identify renewal of the same deposit.
• Ignoring internal bank transfers.
• Failing to separate family-member income.
• Assuming registered title alone proves lawful source.
• Ignoring construction and renovation expenditure.
• Producing backdated or reconstructed records without disclosure.
• Giving inconsistent explanations before different agencies.
• Failing to challenge duplicate attachment.
• Ignoring the difference between DA and proceeds of crime.
• Assuming family relationship establishes criminal liability.

Frequently Asked Questions

1. What is a disproportionate-assets case?

It concerns alleged possession of resources or property disproportionate to a public servant’s lawful known sources during the relevant period, which cannot be satisfactorily accounted for.

2. Is the check period fixed by law?

No universal period applies. Its selection must be justified by the service, alleged conduct, acquisition dates and investigative record.

3. Can ED examine my spouse’s bank account?

ED may examine a connected account where it alleges receipt, holding or use of proceeds. The spouse may establish independent income and transactions.

4. Does every cash deposit become a disproportionate asset?

No. Its source, timing, repetition, documentary support and subsequent use must be examined.

5. Can an old fixed deposit be counted?

An FD predating the check period should ordinarily be recognised as an opening asset, subject to proof of its existence and source.

6. Can the same FD be counted after every renewal?

The same principal should not be repeatedly counted as fresh wealth merely because it was renewed.

7. Can ED attach mutual funds and shares?

Yes, where ED alleges that they represent proceeds, their value or property involved in money laundering and the statutory conditions are satisfied.

8. Can a spouse’s salary explain family property?

Related Delhi legal guides

PMLA provisional attachment · Adjudicating Authority procedure · PMLA Appellate Tribunal

Official starting points

Prevention of Money-laundering Act, 2002 — India Code · Directorate of Enforcement — official website

Document-first assessment

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